Islamabad - More than 18 million people had been added among poor in the last six years raising the poverty ratio to 37% of the population suggesting that official claims of a declined poverty ratio were false. An annual report â€˜Devolution and Social Developmentâ€™ released on Saturday by the Social Policy and Development Centre (SPDC) testified that total expenditures of all dissolved ministries under the 18th constitutional amendment were Rs 21.1 billion whereas the figure for reconstituted ministriesâ€™ stood at Rs 15 billion.

The report highlighted that political considerations, legal impediments and bureaucracyâ€™s desire for centralised control had led to significant setbacks in the implementation of the devolution process. The report also presented implications of the 7th National Finance Commission (NFC) Award on social development.

According to the report, the federal government created eight new ministries in the name of performing functions that were reserved for devolved ministries. From a total of 301, only 90 functions and operations had been devolved to the provinces implying that the federation had kept a major share with itself. The federation also refused handing over administration of several institutions including colleges and hospitals to the provinces, the report said.

The 7th NFC Award and the passage of the 18th amendment to the constitution were hailed as major steps in the direction of devolution in Pakistan, and by extension, an acceptance of the long standing demand of provincial autonomy. The report however stated that original transfers under the award to provincial governments had primarily been used to generate budget surpluses and increased current expenditures. In actuality, social sector expenditures by provincial governments remained constant at 2.1 percent of the GDP, said the report.

The report further mentioned that the level of malnutrition had also worsened and progress in social development indicators had slowed down since 2007-08.

The report identified some major emerging issues from the 18th amendment that included sharing of the burden of power, load shedding, devolution of social security and higher education, drug regulation, agricultural policy and environmental protection.

Finally the report expressed disappointment on the slow pace of setting up elected local governments as per the 18th amendment. The report was presented by SPDC Managing Director Dr Khalida Ghuas who highlighted the historical context of the issues surrounding federalism in Pakistan.

Asif Iqbal reviewed progress on implementation of decentralization under the 18th amendment and Dr Aisha Ghaus Pasha spoke on the implementation of the 7th NFC award on sub-national finances and its potential impact on social development.

Dr Hafeez Pasha highlighted emerging issues arising from implementation of the 18th amendment and their possible solutions. The launching ceremony of annual review, 2011-12, titled Devolution and Social Development in Pakistan was chaired by chairman of board of directors of SPDC Sartaj Aziz.

Pakistan and India are almost the same in poverty levels but in pakistan the middle class is a smaller proportion of the population.Pakistanis have a very established feudal class,these guys are very rich .
But pakistan severely lacks an affluent middle class unlike India which has a big,affluent and growing middle class.
Middle class are the growth engine of the economy,they are the consumers,they are the employees and they are the one who bring change in society.

In 70's we indians were suffering in hellish poverty,there was very little middle class because of socialist policies of secularwadi nehruji but there was a upper feudal class who were very rich.Same is the case is in pakistan.
There are lack of middle class ecosystem like colleges,cities etc in pakistan.